Kesko's year 2007

12
Kesko's year 2007
Reliable quality
Quality assurance of Pirkka products is made
by the in-house Product Research Unit and
the K-test kitchen, which give their approval
to all own brands and also develop and test
all the recipes to be published. In 2007 the
Product Research Unit tested some 9,200
samples and developed about 650 recipes.
Kesko Food’s Product Research Unit also has
a special Consumer Service Unit, the duties
of which include answering phone calls and
email messages concerning Pirkka products.
In 2007 the Consumer Service Unit received
20,300 contacts.
Extensive information about the customer
groups’ purchasing behaviour which is produced
by K-Plussa, the K-Group’s customer
loyalty card, is used for the benefit of customers
in selection planning, targeted special
offers and rewarding customers.
The right to know what you
are eating – Pirkka
The Pirkka product range, which has been
part of Finnish consumers’ life for over 20
years, is an important competitive asset for
K-food stores. There are over 1,600 Pirkka
products, and new ones are continuously
being developed. The sales of Pirkka products
grew by 16.7% in 2007.
The theme of Pirkka products is “The
right to know what you are eating”. This is
manifested in product safety and uniform
quality. The selection is diversified and meets
the demands set by various eating habits.
Recipes created around Pirkka products
are published in the K-Group’s customer loyalty
magazine Pirkka and the largest Finnish
online cookery book Pirkka.fi. The recipes are
also presented in the K-RuokaPirkka leaflet
that is published weekly and available in all
K-food stores and on the TV programme
“What are we having today?”. These recipes
form an essential part of the affordable food
solutions and services offered to customers.
The concepts based on the customer
structure are founded on the strengths shared
by all chains, their customer structure and
the local market situation. K-food retailers
are responsible for delivering chain-specific
customer promises and taking local customer
needs into account.
A competitive price level is a prerequisite
for growth and customer satisfaction. Price
competitiveness is strengthened by efficient
practices all the way from customer to supplier,
cooperation between chains and longterm
cooperation models with selected
partners.
Systematic building of selections, logistics
and purchasing create a basis for efficient
business operations. Domestic purchasing
volumes and the international sourcing
cooperation (AMS) generate considerable
price benefits.
A strong store network is important for
growth. Development of store sites and the
store network will be strong. During the next
three years Kesko Food will open 20 new
K-citymarkets, 50 new K-supermarkets and
40 new K-markets.
Active renewal, learning and management.
The best retailer expertise is maintained
and increased by ongoing training.
The K-instituutti training centre arranges
training for Kesko Food people, retailers and
store staff and for key stakeholder groups. A
strong pioneering position requires adopting
new technologies.
In June, Kesko Food received an award for
efficient use of GIS technology. The international
prize, which is presented annually, was
awarded by ESRI (Environmental Systems
Research Institute, Inc.).
Customer information and its better use
in all operation is based on the customer and
product group level information produced by
K-Plus Oy. In addition, customer behaviour
and market prices, for example, are studied.
Key customer programmes are built on the
basis of customer information.